SEC. 325. POLICY REQUIREMENTS.
Title[ Title III\Subtitle C Contents
PART II--CONSUMER PROTECTION PROVISIONS
SEC. 325. POLICY REQUIREMENTS.
Section 7702B (as added by section 321) is amended by adding at the
end the following new subsection:
``(g) Consumer Protection Provisions.--
``(1) In general.--The requirements of this subsection are
met with respect to any contract if the contract meets--
``(A) the requirements of the model regulation and
model Act described in paragraph (2),
``(B) the disclosure requirement of paragraph (3),
and
``(C) the requirements relating to nonforfeitability
under paragraph (4).
``(2) Requirements of model regulation and act.--
``(A) In general.--The requirements of this
paragraph are met with respect to any contract if such
contract meets--
``(i) Model regulation.--The following
requirements of the model regulation:
``(I) Section 7A (relating to guaranteed renewal or noncancellability), and the requirements of section 6B of the model Act relating to such section 7A.
``(II) Section 7B (relating to prohibitions on limitations and exclusions).
``(III) Section 7C (relating to extension of benefits).
``(IV) Section 7D (relating to continuation or conversion of coverage).
``(V) Section 7E (relating to discontinuance and replacement of policies).
``(VI) Section 8 (relating to unintentional lapse).
``(VII) Section 9 (relating to disclosure), other than section 9F thereof.
``(VIII) Section 10 (relating to prohibitions against post-claims underwriting).
``(IX) Section 11 (relating to minimum standards).
``(X) Section 12 (relating to requirement to offer inflation protection), except that any requirement for a signature on a rejection of inflation protection shall permit the signature to be on an application or on a separate form.
``(XI) Section 23 (relating to prohibition against preexisting conditions and probationary periods in replacement policies or certificates).
``(ii) Model act.--The following requirements
of the model Act:
``(I) Section 6C (relating to
preexisting conditions).
``(II) Section 6D (relating to prior
hospitalization).
``(B) Definitions.--For purposes of this paragraph--
``(i) Model provisions.--The terms `model
regulation' and `model Act' mean the long-term
care insur-
ance model regulation, and the long-term care
insurance model Act, respectively, promulgated by
the National Association of Insurance
Commissioners (as adopted as of January 1993).
``(ii) Coordination.--Any provision of the
model regulation or model Act listed under clause
(i) or (ii) of subparagraph (A) shall be treated
as including any other provision of such
regulation or Act necessary to implement the
provision.
``(iii) Determination.--For purposes of this
section and section 4980C, the determination of
whether any requirement of a model regulation or
the model Act has been met shall be made by the
Secretary.
``(3) Disclosure requirement.--The requirement of this
paragraph is met with respect to any contract if such contract
meets the requirements of section 4980C(d).
``(4) Nonforfeiture requirements.--
``(A) In general.--The requirements of this
paragraph are met with respect to any level premium
contract,
if the issuer of such contract offers to the
policyholder, including any group policyholder, a
nonforfeiture provision meeting the requirements of
subparagraph (B).
``(B) Requirements of provision.--The nonforfeiture
provision required under subparagraph (A) shall meet the
following requirements:
``(i) The nonforfeiture provision shall be
appropriately captioned.
``(ii) The nonforfeiture provision shall
provide for a benefit available in the event of a
default in the payment of any premiums and the
amount of the benefit may be adjusted subsequent
to being initially granted only as necessary to
reflect changes in claims, persistency, and
interest as reflected in changes in rates for
premium paying contracts approved by the Secretary
for the same contract form.
``(iii) The nonforfeiture provision shall
provide at least one of the following:
``(I) Reduced paid-up insurance.
``(II) Extended term insurance.
``(III) Shortened benefit period.
``(IV) Other similar offerings
approved by the Secretary.
``(5) Cross reference.--
``For coordination of the requirements of this
subsection with State requirements, see section
4980C(f).''.
Contents
Contents
Prev
Next
Last
